This page has been archived and commenting is disabled.
It Wasn't The Swiss: Continuing Plunge In GOFO Means No Easing Of Worst Gold Shortage In Over A Decade
Yesterday, when we commented on what was largely a pre-determined outcome of the Swiss gold referendum, we said that there still "is the question of what happens to the tension in the gold swap market: as noted last week, the 1 Month GOFO rate had tumbled to the most negative in over a decade. It was not clear if this collateral gold squeeze was the result of Swiss referendum overhang or due to other reasons. The market's reaction on Monday should answer those questions."
Well, a few hours ago we got the GOFO update for the "day after" and the answer is clear: it wasn't fear of the Swiss referendum after all because the 1 Month GOFO just crashed even deeper into negative territory with the entire curve through 6M now red, and with 12 month GOFO just 0.6 bps away from negative for the first time. At this rate, tomorrow's update will suggest that big institutions expect the gold swap shortage to persist through the end of 2015!
Also, judging by the gold reaction, which is about $50 from the overnight lows, someone else appears to have noticed that the rather shocking shortage of synthetic gold among institutions, which is finally seeping through into that whole "price discovery" process, where supply and demand actually matter.
Bottom line: whatever caused the record scramble for rehypothecated gold, it wasn't fears about the outcome of the Swiss referendum. Something else spooked the precious metal a month ago, and as seen on the chart above, things have only gotten progressively worse since then.
Source: LBMA
»
- 41797 reads
- Printer-friendly version
- Send to friend
- advertisements -
in the year 2020 I will have gold and a farm
A farm? A farm?
Why not many farms?
it's 2020, I'm 73 and sick, I level my double barrel with 00 buck and remove your leg. How much potatoes do you give me?
Gold Bitchez....I pick up potatoes too
The year is 2020. The government just tripled your property tax and the currency was debased AGAIN......
How many fiat will you take for that pound of taters? Hmmmm.
The year is 2015. The Elite have decided that nuking Chicago and then seizing everybodies bank accounts is a good plan. So they do.
Then the real purpose of the attack is revealed all along - to be in a good position to default on the international debts, whilst holding the citizens hostage by bank account freeze.
World trade ceases as the US cannot be trusted to be traded with. Interest rates skyrocket to attract investment, your mortgage payment on your farm goes from $1200 / month to $8000. You default on the loan.
Mean while Gold soars, real estate crashes and the guy with 200 tons of gold buys it up for 20 cents on the dollar while gold skyrockets as a safe haven to $2500. So he buys it (and all your potatoes) for 10 ounces of gold.
You come back and offer to work for free so that you can eat some of them.
What would Pol Pot do......
Take your farm, your potatoes, your daughter, your wife...your life.....and then he would take all that freaken gold....
Which ever way you turn you will face the barrel of a gun....
The guys holding the guns have to eat too. If they are getting paid in fiat that buys nothing, their loyalty to TPTB cannot be counted upon.
Straw man anyone?
"At 11.00 am, the mean is established for each maturity by discarding the highest and lowest quotations in each period and averaging the remaining rates."
only the mean GOFO and not the individual makers' rates are quoted in this graph. the LBMA do not publish the latter.
so, the highest rate might be far, far outside 1 standard dev., indicating not every bank is actually suffering a shortage. you'll have to get in touch with each of them to get a quote in order to find out what is actually going on.
Local dealers in my neck of the woods - 1 oz. Gold Maple Leaf $1425 CDN @$1364 spot = 10.4 % premium. Silver Maple Leaf $22.57 CDN @$18.63 spot = 21% premium. Canadian dollar = dismal.
I see premiums over spot on maples at $45. Same as always. $55 on eagles and $70 buffalos. Lots of stock on hand. The only high premiums are on 1/10 eagles at $145 each net on a $1200 spot.
Gold 1209$, Mr Richards says lift off happens at 1204$ maybe somebody is going to be right for a change
Hey !
Dat mofo gofo
he mah bro.
Say,
you wanna do some snow ?
Hey Gofo,
you got any moar blow ?
Goon
to tha moon !
Well, I remember I was totally amazed the day gold made a $25(fiat) "shot to the moon". Cashed out my little bitty account and purchased some phys for christmas presents.
Today is another amazing day.
It is truly, exciting times we live in.
I long to be amazed again with a headline: Banksters, politicians, media, commie acamedians, RICOed.
Just wait; one morning you will wake up to a 250$ rise!
On a related note: http://thenewsdoctors.com/post-swiss-gold-referendum-and-bear-raid-here-comes-the-business-press-manufacturing-reality-eric-dubin/
Wow, when this thing explodes - it's going to be epic. All manner of stuff. Governments will not be able to make payments. Banks won't be able to make payments. Nobody will trust them or their so-called money. Poof.
But back to something positive. Visit my website to quickly and easily purchase PC PARTS on Amazon - http://amazonpcbuilder.com
If you've ever tried to do a complete desktop pc build on Amazon you know how difficult it can be. Searches return erroneous results and categories are more difficult to figure than Obamacare. I've tried to remedy this - Amazon, not Obamacare. The remedy to Obamacare is direct primary care doctors.
Thanks.
I prefer Newegg for PC parts. Start with a barebones system from there and add parts as you like. No problem navigating the categories.
Gold is the best natural medium to serve as money. For any medium to become widely recognized as money it has to be widely and actively used as such in daily trade for goods and services. Whether a monetary medium goes mainstream because of coercion, deception, free will choice, widespread idiocy or sagacity, a combination of factors, or whatever, the medium needs to be mainstream to effectively become money. That is true of either fiat or specie media. For obvious reasons TPTB prefer fiat media under their direct control to become money and therefore intervene in all human processes to bring about that result. TPTB correctly understand that the majority of humans are not sagacious and can be led to their own folly. If they are right about that they can lose control of one fiat currency (via crack up boom inflation) and replace it with another one to reset the economic system after a nice chunk of wealth has been transferred to the club members from the flock. Don't underestimate the stupidity of people, this has been done many times in the past. If you believe people in general to be stupid then it is not logical to believe that gold will become everyday money. If you believe the mob can learn from the past then you believe that that gold will have its day in the sun as money. If gold does not become everyday money it will not appreciate due to deflationary pressure that can only occur from high levels of everyday trade usage. Probably India best represents gold as the nearest thing to mainstream money in a cultural sense. Gold is insurance money because if everything collapses economically there is always a small segment of the population that will trade underground for gold; central banks hold gold as a backup in case they cannot perpetuate the fiat fraud any longer, that is their kind of hedge, but by no means CB's prefer gold is their first choice.
I don't hold gold or any potential or actual monetary media as a potential capital appreciation investment because I have no way to know which way the wind will blow regarding which media will gain or lose favor as money. If I thought the sheeple were smart I would pile up gold because I anticipate they would come around to the common sense conclusion that it's the money in their own best interest at which time gold would fly. But personally I think the sheeple are perpetually stupid and at best can react, well reactively, to life's little bumps in the road. So to me, monetary media is something I use for trade (buying and selling things, not fucking around in the stock market type of trade). Personally, I prefer the kind of trade that is private by nature and hence prefer the monetary media that facilitates the "privacy". i.e. cash, bitcoin, PM's. As for storing the surplus from trade (profits not consumed) I try to find assets that people need to rent which also holding their capital value. These days I think we can all agree its getting harder to trade profitably and harder to store the surplus profit (near extinct) in assets that provide a ROI; hell in the emerging feudal/fascist world the PTB is so effectively ramming up the sheeples ass, its getting damn near impossible to own anything. Maybe when it all hits rock bottom having some PM's, a tradable skill of some sort, and some chattels with utility, will be the way to handle wealth creation and wealth storage in the future. To become rich you will have to become a sheeple fleecer club member or a well placed member of the administrative network that serves them. In the planned future are either king, king maker, noble, tradesman, or feudal serf and I think the plan is for the majority of those left alive to become serfs.
I was reading panicky headlines about gold on Zero Hedge back in 2009.
I'm still reading panicky headlines about gold on Zero Hedge.
...all is right with the world!
Who could even think of parting with such a valuable item as paper for a barbarous relic as gold
Tradition!
Gold being down over the last 3 years is all a massive conspiracy!
It's all one big episode of The Truman Show!
Just because you run out of something doesn't mean the price has to go up(immediately).
If you run out of a resource, but everyone who uses that resource already has a hefty stockpile, the effects of the shortage on the price can be delayed to the point where the people who consume said resource need to re-stock.
So , when your jewelers, brokers and distributors run out, and their clients want to consume more gold, the price of gold will inch up (with market forces) Some parts of the market might be stuck at the point where they are out of supply but the stocks have not been consumed by the end users/owners (the buyers are satiated for the time being).
Really its getting to the point where the paper price is not a reliable measure of value (the markets have bifurcated).
Over-Seas the word is that gold is selling at a 300~600$ premium over spot (in asian markets).
People make the mistake of assuming that there is only one gold market... (the spot price).
There is the asian gold market, the european gold market , the american gold market, and the street gold market and the industrial market (for large orders).
All these markets have wild fluctuating prices.
But the spot prices are completely disconnected from reality, because to get an oz of gold for anything near spot . . . . you will wait months for delivery (if you ever get it).
The paper fraud is coming undone..... the house of cards is becoming unbalanced and something is going to give... soon™ .
The real value is in the market, and the most reliable market will win this and gain users.
Imagine if no one used the American markets because they were deemed fraudulent . . . .? and everyone who wanted to purchase or sell gold only delt on the Asian exchanges? what would that do to the credibility of all the other euro/american markets (stock market/funds market/bonds/ etc.....)
If they lie about the gold, why would they not lie about the certificates of every other "asset class"?????
It would be a pretty bad blow to all markets for the elite to destroy the credibility of the American/European gold markets.
This is why central banks are trying to stop repatriation, (the fed mostly) because if everyone repatriates their gold, it pulls the proverbial string on the sweater and the whole sweater comes undone and the emperor has no clothes.
Manipulating the price of gold, has nothing to do with the price of gold, but everything to do with everything else.
The Fed has to simulate a gold dump on the markets and scare everyone....into selling their gold to the central banks dirt cheap.
If they don't
Its Armageddon.
You will see spot prices fall, no matter what to the point atleast where they can trigger as many stop losses as possible.
Also I would like to add that you will probably see (or we are starting to see) a "Gold War" or a war for the control of the price of gold.... obviously some of the biggest holders of gold (Russia, China) want to see gold RISE because they have a lot of it and plan to accumulate more.... and the countries that have no gold (Europe and the USA) (because lets face it, we have the biggest crooks running our financial and banking systems and there is no way they didnt steal the gold and sell it to buy hookers and coke), eeeh where was I? o yea, the countries that have no gold (USA and Europe) want to see the price of gold drop (so they can re-stock and fill orders that they have no hope in hell of filling).... and because to let gold rise when you have none and your "enemy" has a ton is to shift the global balance of power (Russia and China) would over-take the USA and Europe in terms of
Manufacturing and High Finance... which leaves the USA and Europe with the proverbial thumbs up their ass as their economies are completely based (except for germany) on Financial Bullshit and Paper pushing (they produce nothing of value).
So how can your country have any meaningful power or influence in the world when you have no Money, No Production ???? you endup looking like North Korea.
The USA will look like North Korea (a big govt with nukes and broke citizens)
Your country has to specialize in atleast something . . . and I don't really think China and Russia are going to export meaningless paper work to the Office Gulags in the United States for sorting . . . since no one here speaks Russian or Chinese in mass... anyway.
Is everyone here that dense????
Newsflash; the Swiss gold vote was a good thing for gold bugs!
If your a gold holder you do so because the central
banks and the PTBs do NOT have gold!
When the PTBs and CBs start buying, you should sell!
IDK Central Banks are not going to buy gold and then have it depreciate on them, it will be forced to rise as an asset (once they have gold).
But really, we all know the plan already, its to destroy all sovereign currencies at the same time, and have the IMF come in and bail everyone out with some freshly printed worthless SDR'S or some other fraud, and then all nations end up under a one world order currency that fucks and rapes and pillages every citizen on the planet under one system.
Then nations fall apart govts fall apart chaos ensues and the IMF takes over as world govt/world police.
Then we have the most corrupt and dangerous nuclear armed dictatorship in history.
Thats where this is all going and everyone knows it.
This is good news for stawks.........right?